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Author Question: Freetown Corporation incurred fixed manufacturing costs of $26,000 during 2017. Other information ... (Read 113 times)

panfilo

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on: Mar 6, 2021
Freetown Corporation incurred fixed manufacturing costs of $26,000 during 2017. Other information for 2017 includes:
 The budgeted denominator level is 2,800 units.
 Units produced total 1,500 units.
 Units sold total 1,300 units.
 Beginning inventory was zero.

The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level. Manufacturing variances are closed to cost of goods sold.

Fixed manufacturing costs expensed on the income statement (excluding adjustments for variances) total ________. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
◦ $12,077
◦ $22,533
◦ $26,000
◦ $0
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by panfilo on Mar 6, 2021

kingdude89

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Reply #1 on: Mar 6, 2021
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panfilo

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

bigsis44

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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